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With the four-month-old bankruptcy case for fallen real estate developer Scott Fergus entering its final stage, it’s becoming increasingly clear that most of his creditors will be left empty-handed.

As the Aug. 13 deadline for filing claims approached this week, trustee Michael Maxwell was looking at $79.1 million owed to unsecured creditors and just $30,000 available to pay them.

After sifting through Fergus’ financial filings, Maxwell has determined that personal belongings owned by the developer that could be applied to his debt were so minimal that they will net just $3,000. The remaining $27,000 will come from tax refunds due Fergus for 2006 and 2007.

“I think this is pretty close to the bottom line,” Maxwell said this week. “I haven’t turned in a final report yet, but the final figure will probably be in that ($30,000) area.”

The largest creditor, AnchorBank, Madison, which is owed $56 million, held the mortgage on Fergus’ troubled First Place on the River condominium project and hopes to recoup much of that sum by seeing the development through and collecting on condominium sales.

The next largest single loan, $2.4 million from Citizens Bank of Mukwonago, is backed by real estate owned by a business partner, according to Charles Miller, the bank’s chief executive officer.

“We’re fairly confident we’ll recoup all of our principal because of the real estate,” Miller told a reporter. “We’ll sell it or lease it. But I don’t think we have any illusion that we’ll get back all our interest and expenses,” estimated at $431,302.

Citizens Bank did file a claim, so it could be in line for a sliver of the relatively small pie eventually carved by Maxwell with the approval of a judge.

But the vast majority of other creditors did not file claims as the Aug. 13 deadline passed. Just 33 of the 140 creditors listed by Fergus filed claims totaling less than $5 million through Aug 12.

“A lot of times people figure it’s not worth their effort or the cost of getting an attorney involved when there is a small amount to distribute,” said Jerry Tepper, a Glendale attorney who formerly served as a trustee and has specialized in bankruptcy practice the past two decades. “A lot of people decide to throw it away.”

Fergus filed a Chapter 7 petition April 7 in U.S. Bankruptcy Court in Milwaukee, listing assets of $721,567. An amended filing by Fergus and his attorney, Bruce Lanser, of Milwaukee, was made July 22 and listed assets totaling $738,859, but the bulk of that total came from Fergus’ Oconomowoc home and its true value is hard to determine.

The bank holding the mortgage, U.S. Bank NA, which has its headquarters in Cincinnati, said in a filing that the mortgage, interest and taxes owed by Fergus totaled $609,993 for the property, exceeding the fair market value of $507,700. The bank recently was given clearance to initiate foreclosure proceedings.

Holdings in a retirement plan and household furnishings totaling $30,000 were deemed exempt from liquidation.

Slim pickings

By the time Maxwell finished picking through Fergus’ remaining belongings, including some Oriental rugs, watches and sporting goods, he judged their worth at just $9,890 and decided that rather than attempt to sell the goods, it made more sense to accept a $4,000 payment from Fergus. Of that, $1,000 will go toward administrative costs, leaving $3,000 along with the $27,000 in tax refunds to settle claims.

The largest non-bank claim filed in the case, $847,310, came from Hurtado SC, a Wauwatosa law firm.

Several people who provided Fergus and his businesses loans over the last few years also filed claims. The largest came from Lou Stadler, of Menomonee Falls, who loaned the developer $100,000 in 2006 at an interest rate of 25 percent.

Stadler, who stopped receiving interest payments in September 2007 and claims Fergus owes him $112,602, declined to speak with a reporter.

Ray Chesner, whose claim for a loan totals $31,980, refused to blame Fergus, even though he only collected interest payments.

“I don’t think we’ll see any of that, but I don’t hold it against him,” Chesner said. “He’s a sincere fellow and a good businessman. He didn’t cause the problems. The economy in general went bad.”

Maxwell said claims for money owed strictly by Fergus’ failed business ventures will not be entitled to a cut of the $30,000, unless they had his personal guarantee attached to the debt. All personal debt would be eligible.

SEEKING PAYMENT

Some of the largest claims filed by creditors against real estate developer Scott Fergus include:

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